LANSING, Mich. — The Michigan Senate on Thursday passed State Sen. Jim Runestad’s resolution urging Congress to permanently expand the Tax Cuts and Jobs Act of 2017 with commensurate spending cuts to avoid increase the federal tax burden.
“Washington’s reckless spending and harsh unilateral shutdowns imposed by self-governing governors like ours during the coronavirus pandemic have resulted in historic inflation and economic hardship not seen in decades,” said Runestad, R-White Lake. “It is imperative that lawmakers work to help taxpayers climb out of this government-created hole by cutting wasteful spending and ensuring that hard-working Americans can keep their own money.”
Senate Resolution 154 states, “Prior to government-imposed economic shutdowns during the COVID-19 pandemic, the Tax Cuts and Jobs Act of 2017 (TCJA) spurred steady economic expansion and enabled entrepreneurship to flourish, while creating new jobs and opportunities for tens of millions of Americans. The law resulted in a net tax cut of $1.5 trillion and was followed by historically low unemployment rates, increased business investment and a $6,000 increase in real median household income over the past year. of the next two years.
According to the American Legislative Exchange Council (ALEC), the 2017 tax cuts reduced federal tax rates for households at all income levels, resulting in more than $1,500 in tax relief for middle-income people. Prior to the TCJA, the highest corporate income tax rate in the United States was 35%, the highest of any country in the Organization for Economic Co-operation and Development; the act reduced the corporate tax rate to 21%, bringing the United States into the middle of the member nations and significantly improving American competitiveness.
“As hard-working taxpayers continue to suffer the adverse effects of inflation, it is more important than ever to continue to receive the benefits of the Federal Tax Cuts and Jobs Act of 2017. These provisions include crucial changes such as the reduction of personal income tax rates, the near doubling of the standard deduction and the substantial reduction of the hated alternative minimum tax. The Tax Cuts and Jobs Act of 2017 has proven to be a big boost for all Americans,” said Jonathan Williams, ALEC Chief Economist and Executive Vice President of Policy.
Most TCJA requirements are currently set to end by December 31, 2025.
“Letting these tax cuts expire would result in a huge increase in federal taxes on the American people and further hamper the recovery of our shared economy,” Runestad said. “History shows us that people know how to spend their own money far better than the government and our entire nation thrives when given the freedom to do so. I hope Congress expands the Tax Cuts and Jobs Act and cuts irresponsible federal spending, giving taxpayers confidence to invest in their own future and rebuild a thriving American economy.
Copies of SR 154 will be given to the Speaker of the United States House of Representatives, the President of the United States Senate, and members of the Michigan Congressional delegation.